Robert Troy (Longford-Westmeath, Fianna Fail)
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Question 106: To ask the Minister for Finance if he will consider introducing some exemption to the VAT or vehicle registration tax charged on seven- to nine-seater minibuses for publicans who wish to purchase same for the purpose of transporting customers. [37059/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy may be aware a publican who provides a bus exclusively for the purpose of taking patrons to and from the public house will be entitled to claim a deduction for the VAT on the cost of acquisition of the bus, but only if the bus has more than 16 seats. Section 60 of the Value-Added Tax Consolidation Act 2010 prohibits a deduction of tax to the extent that it relates to expenditure incurred on the acquisition of a motor vehicle, unless it is designed and constructed for the carriage of more than 16 persons, including the driver. If he charges the passengers for the transport, the publican will not be entitled to any VAT deduction, regardless of the size of the bus. This is because the carriage of passengers is exempt from VAT and no deduction can be claimed for tax charged on expenditure incurred in an exempt activity. With regard to Vehicle Registration Tax (VRT), I have no plans to introduce an exemption of VRT charged on 7/9 seater mini-buses for publicans who wish to purchase same for the purpose of transporting customers.